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How do you get around paying taxes? Am I missing something?
When you buy something via mail order from a company in a different state and have it shipped to you via common carrier you aren't charged sales tax on the purchase. You are supposed to pay the sales tax on the purchase to your own state, but few people actually do that.
When you buy something via mail order from a company in a different state and have it shipped to you via common carrier you aren't charged sales tax on the purchase. You are supposed to pay the sales tax on the purchase to your own state, but few people actually do that.
Not necessarily.
The key is whether the retailer has nexus (a tax presence in the state). For example, if you order from Lands End, you will be taxed if they have a store in your state.
On major purchases, I have seen people ship an item to an out of state relative and pick it up later. In most cases, it is not really worth it.
The key is whether the retailer has nexus (a tax presence in the state). For example, if you order from Lands End, you will be taxed if they have a store in your state.
Not true. You owe taxes whether it has a presence in your state or not.
Quote:
Originally Posted by jlawrence01
On major purchases, I have seen people ship an item to an out of state relative and pick it up later. In most cases, it is not really worth it.
This is called tax evasion. It is illegal.
Here's an excerpt from the Chicago Tribune that explains it:
"Consumers who live in sales-tax states, such as Illinois, owe state sales tax on their Internet purchases, whether they pay it during virtual checkout or when they file their state income tax returns."
I understand that Amazon isn't collecting taxes. But the OP states that his concern is that he will now be paying taxes on Amazon purchases. This implies that he is not paying sales taxes on Amazon purchases currently. That is evading taxes. Thus, according to the OP, he is evading taxes.
Right now he is not charged taxes because he does not have to pay taxes to an internet retailer than does not maintain a presence in his/her state. The OP is not doing anything wrong. Nobody has to pay sales tax to an internet retailer that does not have a presence in their state.
Once Amazon.com has a presence in the OP's state sales tax will be required, by law.
Right now he is not charged taxes because he does not have to pay taxes to an internet retailer than does not maintain a presence in his/her state. The OP is not doing anything wrong. Nobody has to pay sales tax to an internet retailer that does not have a presence in their state.
Wrong!
PA has a use tax, and I cannot imagine that we are the only one
In part:
"Out-of-state businesses and Internet vendors often falsely advertise that they sell taxable items “tax free”. However, Pennsylvania law requires the payment of use tax by any person who purchases taxable goods or services delivered into or used in Pennsylvania if sales tax is not collected by the vendor. Use tax is the counterpart of the state and local sales taxes.
When Pennsylvania sales tax is not charged by the seller on a taxable item or service delivered into or used in Pennsylvania, the consumer is required by law to report and remit use tax to the Department of Revenue. "
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